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BP displayed gross negligence regarding the massive 2010 oil spil in the golf of Mexico
It's a ruling that could cost the company billions in fines
Judge Carl Barbier ruled BP acted recklessly
and ignored repeated warning signs while operating its Deep Water Horizon oil rig in the Gulf
actions which led to the rig's explosion on April 20, 2010
the disaster killed 11 people and spilled over 4 billion barrels of oil into the Gulf according to U.S. government estimates
Barbier divided blame for the disaster onto three of the companies envolved
BP, Halliburton and Transocean. The majority of liability was put on BP's shoulders
Barbier found that while Halliburton and Transocean might have acted negligebly
only BP acted recklessly
phrases like "reckless" and "gross negligence" are extremely damaging for BP
because they increase the company's liability under the Clean Water Act
normally BP's fines would cap at $1100 a barrel for simple negligence
but gross negligence almost quadruples that figure
Thursday's ruling could cost BP up to 18 billion dollars if the U.S. imposes the maximum penalty
BP has earmarked only 3.5 billion dollars for Clean Water Act fees
The company has strongly disagreed with the ruling claiming that Barbier decision is not supported by the
evidence at trial and bound to appeal it
It's worth noting that BP hasn't shy away from responsibility for the spill
the company's most recent earnings report estimates the spill is cost the company 43 billion dollars to date
but BP has also argued Halliburton and Transocean should bear much greater share of the liability
than Barbier assigned them. Both Halliburton and Transocean have already agreed to 1 billion dollar settlement
over the catastrophe which could help them avoid some potential fines
Halliburton's settlement came just two days before the ruling
Thursday's decision was just the second part of a three phase court battle over the oil spill
The third part which begins January will decide the exact amount each company
must pay.